Korek to pay $1.25 billion to lift telecom restrictions: Iraqi commission

ERBIL, Kurdistan Region - Iraq’s Communications and Media Commission (CMC) on Wednesday said it has reached a deal with Korek Telecom to settle outstanding payments totaling $1.25 billion, allowing the company to resume full operations after nearly a year of restricted service.

Zahra al-Bachari, head of the Iraqi parliament’s transport and communications committee, told Rudaw that per the agreement, "Korek Telecom will pay $1.25 billion to the Iraqi Media and Communications Authority over a period of six years."

For nearly a year, subscribers to Korek, a company headquartered in Erbil, have been unable to make or receive calls and to send or receive messages from domestic and international mobile carriers.

The CMC blocked Korek Telecom’s communications with domestic and international carriers, citing unpaid financial obligations. Concurrently, domestic carriers, including Asiacell and Zain, received official letters from the CMC instructing them to sever network connections with Korek due to "financial, legal, and technical matters."

"Korek has officially expressed agreement to repay the accumulated money," said Bachari, adding that repayment will lead to the lifting of restrictions.

The payments initially were to be sent to the Iraqi finance ministry, she said, but the ministry refused and asserted that the CMC was responsible based on a decision from the Iraqi Supreme Judicial Council.

Korek Telecom has not commented on the agreement.

Korek was warned by the CMC in October 2023, when the commission stated the company's operating license had expired, and that it had failed to pay "large sums" of owed money. 

Korek responded at the time that it had with regulations imposed by state institutions and called the CMC's actions "illegal," while also expressing a willingness to resolve the issues according to the law and to cooperate communications with the CMC.

Nahro Mohammed contributed to this report.